Precision Irrigation Market To Witness Massive Growth Forecast to 2022-2027

Water is an essential input for agricultural production and plays a crucial role in food security. A more intensive production system and more crop diversification are possible with irrigated agriculture because it is, on average, twice as productive per unit of land as rain-fed agriculture.

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The movement of water will need to be both physical and virtual. Surface and groundwater resources can be physically moved through changes in initial allocations, mainly from agricultural to urban, environmental, and industrial users. Water can also move virtually as the production of water-intensive foods, goods, and services are concentrated in water-abundant localities and are traded to water-scarce localities.

The global precision irrigation market was valued at $2,238.7 million in 2022 and is forecast to reach $4,471.2 million by 2027 at a CAGR of 14.84%. Owing to the growing demand for food and grains, the growth in the precision irrigation market is expected to be driven by the increasing adoption of digital and smart agriculture equipment and technologies. Some of the primary benefits related to precision irrigation market in the agricultural field include yield monitoring and field mapping, crop scouting, weather tracking and forecasting, irrigation management, and farm economics.

A precision irrigation system is a uniquely sustainable way of providing optimal growing conditions to plants by applying water and nutrients at the right time and place in small doses. Precision irrigation is the process of matching irrigation inputs to yields in each area of a field in order to utilize water efficiently. Water conservation, emerging modern technologies, and their advantages over traditional irrigation have contributed to this market's growth. With limited resources, precision irrigation can significantly increase crop yields.

Due to depleting water levels and increasing fertilizer prices, the global precision irrigation market is expected to grow in the coming years. Precision irrigation requires significantly less water and fertilizer than traditional irrigation methods. Rivulis, CALSENSE, Galcon, Holman Industries, HUNTER INDUSTRIES, HydroPoint, Jain Irrigation Systems Ltd., and Lindsay Corporation are some leading companies operating in the global precision irrigation market. Moreover, crop quality also depends on efficient water use. Crop health is affected by water, which affects other nutrients' availability, cultural operations, etc. Water interacts with other production inputs. In the right combination, irrigated agriculture can significantly increase crop yields. Thus, precision irrigation will benefit from the growing need for optimal water use in agriculture.

The benefits of precision irrigation are largely unknown to farmers in emerging and underdeveloped countries. In these countries, there are a limited number of companies working in this field, and government promotion of advanced farming technologies and water-saving technologies is insufficient. The rising demand for food across the globe requires current farm equipment to be enhanced to improve yield and efficiency. Globally, farmers lack technical expertise and awareness of advanced farm equipment, which makes them hesitant to adopt it. The adoption of precision irrigation equipment requires coordination between different members of the value chain. The market needs consultants to guide growers about new farming techniques. Farmers in the U.S. have shown a keen interest in using advanced irrigation equipment. Apart from the U.S., other developed countries such as Spain, France, Canada, and Australia have also shown significant interest in precision irrigation. However, this type of awareness is not seen in emerging and underdeveloped economies, especially in underdeveloped countries.

Countries with low agricultural production due to climatic conditions and limited arable land can reinvent their agriculture sector by adopting alternative farming techniques. This would help countries to diversify and limit their vegetable and fruit imports. In the coming years, precision irrigation will continue to grow as an alternative, and vertical farming will gain popularity. This is due to increased government initiatives throughout the world to boost the global agriculture industry.

Precision irrigation is used in several applications, such as on-field and controlled environment agriculture, including greenhouse and indoor farming. All the players in the market provide hardware, software, and services for these two applications.

The use of precision irrigation technology not only ensures healthy plant growth in semi-arid regions but also reduces water and fuel consumption. Furthermore, precision irrigation systems protect agribusiness from yield losses caused by climate uncertainty, such as abnormal droughts. The two major methods of precision irrigation are drip irrigation and sprinkler irrigation. In 2021, drip irrigation was the largest method and is projected to remain so until 2027.

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Asia-Pacific was the largest region in the precision irrigation market and is expected to remain the biggest over the forecast timespan. It can be attributed to the large area of agriculture land and the growing food demand in the area. To suffice the growing food demand, farmers in the region are adopting advanced faring techniques. Also, most of the land in the region is arable and falls under a drought-prone area, due to which precision irrigation is becoming more popular among regional farmers.

Competitive Landscape of the Global Precision Irrigation Market

The competitive landscape for precision irrigation is dominated by product developments, innovations, and partnerships and collaborations. Companies are introducing advanced products to serve a wider audience and increase their customer base. For instance, two Bluetooth-enabled and battery-operated irrigation controllers were launched by HUNTER INDUSTRIES in January 2020. Smartphones can easily manage this controller. It is ideal for outdoor applications such as gardens, roundabouts, greenhouses, parks, medians, or other outdoor settings without AC power. Also, in January 2022, HUNTER INDUSTRIES announced a partnership with POGO to integrate sensors and visual insights into its Pilot Network. By integrating POGO hardware and data with the Pilot Network, superintendents and their teams can gain valuable insights. Through the use of powerful scientific insights, HUNTER INDUSTRIES aims to maximize irrigation efficiency while saving time and resources. As a result of this partnership, HUNTER INDUSTRIES will be able to better adjust its scheduling based on soil moisture, salinity, and temperature data that is available in real-time.

Farmers' initial investment burden can be reduced by providing low-cost and innovative products. Due to the high capital requirements, small-scale farmers are hesitant to adopt precision irrigation. As small-scale farmers make up such a large market segment, companies cannot ignore them.